Erin Ventures Inc. [TSX-Venture: EV] announces the following update regarding Erin’s Piskanja boron project in Serbia:
Acquisition, compilation and reinterpretation of the entire historical exploration data base of the Piskanja boron deposit is currently underway by Erin’s geological team. Three separate exploration programs have been conducted at Piskanja since the 1980s: a program of 21 diamond core drill holes concluded in 1991, totaling 6,500 meters, conducted by the Geological Institute of Serbia on behalf of the Serbian government; a 10 RC hole drill program completed by Erin Ventures in 1998 totaling 3,300 meters, and; a 14 diamond drill hole exploration program of 6,400 meters completed in 2009 by Rio Tinto’s Serbian subsidiary.
When analysis of the historical data is complete, Erin intends to proceed with the next phase of drilling on the Piskanja deposit, with the goal of establishing a NI43-101 compliant resource, by conducting in-fill drilling and the twinning of certain of the historical holes, along with step-out drilling in an attempt to expand the known size of the resource. This drilling will form the base for a scoping study on developing a plan for mining the deposit. Engineering, geohydrology, and environmental studies will be completed in conjunction with this drilling. It is anticipated that this next phase will commence during the first quarter of 2011, depending on drill availability.
As part of its overall development strategy at Piskanja, Erin’s management recently hosted a due diligence site visit with the management of a company who is a significant participant in the boron market. These discussions are exploring the possibility of developing a long-term strategic alliance regarding the exploitation of the Piskanja deposit. Erin’s management anticipates meetings with additional potential strategic partners, in an attempt to secure the most advantageous alliance possible.
The historical data, prepared to standards of the Serbian government, states that the Piskanja property has a historical resource estimate of approximately 7.5 million tonnes, averaging 36 – 39 per cent B2O3 (boron). The Piskanja deposit has the potential of hosting additional significant borate tonnage beyond the historical estimate, based on initial review of the historical drill information and assay data showing other zones of possible borate mineralization. A Qualified Person has not done sufficient work to classify the historical estimate as a current mineral resource. Erin is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
It has been ascertained that the boron at Piskanja is primarily colemanite and ulexite. Colemanite currently sells on the world market for approx. US$280/ton, based on a boron content of 40% (approx. the purity found at Piskanja). Ulexite currently sells on the world market for approx. US$500/ton, based on a boron content of 40% (approx. the purity found at Piskanja).
Piskanja is located in a historical mining region that has good infrastructure for mining including roads, rail, electric power, experienced miners, support services, etc., 250 km south of Belgrade, Serbia by good paved roads.
- Boron is a critically important industrial mineral. World production of boron minerals reached an estimated 4.35 million metric tons in 2008.
- Market prices reflect the relative scarcity of borates with prices averaging: US$280/t for colemanite concentrate (40-42 percent B2O3); US$500/t for ulexite (40 percent B2O3); US$550/t for boric acid; and US$1.20/kg for anhydrous borax.
- Consumption of borates used in high-technical applications is expected to increase by 10% in North America and 13% in Europe by 2012. China is the largest consumer of boron, where consumption has risen by 15 percent per year from 2000 to 2010.
- Borate minerals and refined borate products are used extensively worldwide in the manufacture of vitreous products such as fiberglass insulation, textile fiberglass, borosilicate glass (e.g. LCD screens), ceramic glazes and porcelain enamels. These applications account for approximately 60 per cent of borate consumption, with detergents, fire retardants, metallurgy, agriculture, insecticides, wood preservatives and specialty products accounting for the remainder.
Source: US Geological Survey, Report on Boron – 2008.
On behalf of the Board of Directors,
Blake Fallis, General Manager
The technical information in this release was prepared and approved by Dennis J. LaPoint, Registered Geologist in the State of North Carolina, a director of the Corporation, who is a Qualified Person under National Instrument 43-101.
For further information, please contact: Erin’s Public Quotations:
Erin Ventures Inc. Canada
Blake Fallis, General Manager TSX Venture: EV
Phone: 1-250- 384-1999 or 1-888-289-3746 USA
Erin’s Public Quotations:
TSX Venture: EV
SEC 12G3-2(B) #82-4432
Berlin Stock Exchange: EKV
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Forward Looking Statements
This release contains forward looking statements. The words “believe,” “expect,” “feel,” “plan,” “anticipate,” “project,” “could,” “should” and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties including, without limitation, variations in estimated costs, the failure to discover or recover economic grades of minerals, and the inability to raise the funds necessary, changes in external market factors including commodity prices, and other risks and uncertainties. Actual results could differ materially from the results referred to in the forward-looking statements.